News, Views, Opinion, Commentary and Plain Common Sense…

Menu

Q: When Is the Best Time to Refinance?

A: Many people flock to refinance while mortgage interest rates are low, particularly when rates are about two percentage points below their existing home loans.

Other factors, like when to finance, will depend on how long you plan to hold on to your home and whether you have to pay considerable fees to refinance. It also will depend on how far along you are in paying off your current mortgage.

If you expect to sell your home relatively soon, you are not likely to recoup the costs you incurred to refinance. And if you are more than halfway through paying your current mortgage, you probably will gain little by refinancing. However, if you are going to own your home for at least another five years, that is probably long enough to recoup any refinancing costs and realize real savings as a result of lowering your monthly payment.

In fact, if it costs you nothing to refinance, you can gain even more. Many lenders will let you roll the costs of the refinancing into the new note and still reduce the amount of the monthly payment. Plus, there are no-cost refinancing deals available.

Author Spotlight

PSS PROS

At Home Sense Categories

At Home Sense Archives

AT HOME SENSE®, AtHomeSense.com®, the logo mark text, and the “COMMON SENSE AND OPINION FOR BUYERS, SELLERS & HOMEOWNERS” tagline and stylized logo treatments including any one or more of the foregoing are trademarks of PROFESSIONAL SUPPORT SERVICES and are to be used with its permission only. These and all other trademarks used in this work are the property of their respective owners.